PE Interview Valuation Test / Modeling Test
Guys,
Would you mind sharing your experiences at PE interviews where you would be give a valuation test or a model test?
I have heard of either a 3-4 hr test where they ask you to build an LBO or some such model or a take home type of longer modeling exercise with a case to go with it.
Can you please share your experiences or give examples of what you were asked - specific questions or models or any such.
Any info is hugely appreciated... recruiting season has finally begun this year.. thanks a lot! Please PM me if you do not wish to post on forum.
---Message from WSO Below---
PE Modeling Test (Originally Posted: 01/19/2013)
Was curious as to how advanced/complex of a lbo model is required during modeling interviews. I understand there would be a range (with some shops asking for pretty advanced ones), but what's the norm?
Also, is it always a LBO model? Or, do they switch it up?
Details of your experiences are appreciated - thanks for your help!
operating model with LBO or DCF... typically pretty standard / high level (no crazy line items). The tricky part comes with the varying assumptions used and how to set up a model well based on the given assumptions. Takes some practice and foresight to get it down... hopefully you've treated your LBO deals in IB seriously
PM'ed
PM me your secrets too seabird!!! and an update on how you're doing =)
In general, the modeling tests are not that complicated. Most of them are LBOs that can be completed in under 2 hours. If they give you more time than that, they generally expect a write-up or some kind of investment memo. If you come from a consulting background, you may need to practice a bit more than someone works in a traditional IB group.
PE Interview - Case Study / Modeling Test (Originally Posted: 07/29/2009)
Do they give you an excel with historic financials and expect you to build out the LBO model? Or do they give you a printed out hard copy of financials and deal financing assumptions and expect you to build out the LBO?
If anyone could give specifics of their experience it would be great.
Thanks.
the one test I got (a few years ago) was VERY simple and basiclaly just gave a page of assumptions to see if you could build a 3 statement cash flow with some debt paydown (excess CF)and figure out an IRR.
We are actually working on an Interview Guide to Private Equity (to compliment our Breaking into PE & VC Guide) that should include a detailed LBO modeling test.
when in doubt, i would try to keep it as simple as possible and try to make easy assumptions if they give you none. (AR days, AP days stay constant, all excess CF used to pay down debt, no amort. of transaction fees, etc).
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Help! PE Model / Case Study Test Needed (Originally Posted: 08/05/2009)
Hi guys,
I have my final round Friday at a pretty decent PE shop!
They have asked me to allocate 5 hours for a 'test'. I am guessing 5 hours will probably mean a model+case study - where I would have to give some sort of investment recommendation...
i guess a lot of you must have done this in the past couple of years.. can you pleaseeeee PM me some sample case studies/model tests that you guys faced ????
thanks a lot!!
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